Correct Answer:
B. Profit center
A profit center is responsible for revenues and costs; an investment center is also responsible for invested capital.
November 13, 2026 · Accounting and Finance MCQs, Cost & Management Accounting MCQs
A manager who is responsible for both revenues and costs of a division is in charge of a:
Related MCQs
Which of the following is NOT one of Adam Smith's canons of taxation?
A.
Equity
B.
Certainty
C.
Elasticity
D.
Economy
Correct answer is:
C. Elasticity
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Operating income is Rs. 150,000 and average invested assets are Rs. 1,000,000. Return on investment (ROI) is:
A.
6.67%
B.
150%
C.
1.5%
D.
15%
Correct answer is:
D. 15%
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The Auditor-General of Pakistan holds office for a term of:
A.
Four years or until the age of sixty-five, whichever is earlier
B.
Two years only
C.
Five years with no age limit
D.
Until the age of seventy
Correct answer is:
A. Four years or until the age of sixty-five, whichever is earlier
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Stock audit in a government department is intended to:
A.
Verify the physical existence and proper record of stores and stock
B.
Count cash in the treasury
C.
Check payroll only
D.
Verify tax assessments
Correct answer is:
A. Verify the physical existence and proper record of stores and stock
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Conversion cost is the sum of:
A.
Direct materials and direct labor
B.
Direct materials and factory overhead
C.
Direct labor and factory overhead
D.
Selling and administrative expenses
Correct answer is:
C. Direct labor and factory overhead
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Subsequent events are events occurring:
A.
Before the beginning of the financial year
B.
Only after the AGM
C.
During the interim audit only
D.
Between the date of the financial statements and the date of the auditor's report
Correct answer is:
D. Between the date of the financial statements and the date of the auditor's report
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